Leave Policy: Template, Rules & Leave Types

A well-defined leave policy that supports employee well-being and meets organizational goals

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What Is a Company Leave Policy?

A leave policy outlines the rules, entitlements, and procedures for employees to take time off from work. It includes provisions for various types of leave such as casual, earned, maternity, and paternity leave. This policy ensures a fair balance between employee well-being and organizational productivity.

A robust leave policy helps employees plan their time off, reduces burnout, and contributes to overall job satisfaction. It also enables companies to stay legally compliant with labor laws and manage absences effectively.

Employee Leave Policy Guidelines

This sample policy provides the framework for managing employee leave while aligning with business priorities and labor law requirements. It can be tailored to match specific organizational needs.

Core Principles of the Leave Policy

  • Leave is subject to management approval based on business requirements.

  • Unauthorized absence or failure to get leave approved will attract disciplinary action.

  • All leave records must be documented and tracked via the HRMS system.

  • Earned Leave (EL) eligibility begins only after the probationary period ends.

  • Employees must utilize 18 leaves annually (12 Earned Leaves + 6 Casual Leaves).

  • Paid leave is allowed as per the available balance. Once exhausted, unpaid leave applies.

  • No leave can be taken without prior approval from the reporting manager.

  • Leave for Leave Travel Allowance (LTA) must be earned leave and not casual leave.

Types of Leave Offered

Casual Leave (CL)

  • Up to 12 days of paid casual leave per year.
  • Cannot be carried forward or combined with earned leave or other leave types.

Earned Leave (EL)

  • Requires prior application 15 days in advance.
  • Up to 9 earned leaves can be carried forward to the next year.

Maternity Leave

  • Provided to eligible female employees as per the Maternity Benefit Act.

Paternity Leave

  • Provided to male employees for the birth of a child.

Leave Without Pay (LWP)

  • Can be availed in emergencies when no paid leave is available.

Compensatory Off

  • Granted when an employee works on a holiday or puts in extra hours beyond the regular schedule.

Purpose of the Leave Policy

This leave policy is designed to foster a healthy work-life balance for employees while ensuring that the company continues to meet its operational needs. By offering clarity, flexibility, and legal compliance, the policy benefits both employees and employers.

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